“However, we’ve reached an agreement that will deliver enhanced clinical safety, quality care and affordability for members and patients. It is good for both our organisations and all other stakeholders, be they staff or doctors,” they said.

“We are pleased to have achieved certainty about ongoing care for Medibank’s members who require care in Calvary hospitals.

“This renewed partnership places both organisations in a strong position to help tackle the growing challenges facing Australia’s world class health system.”

As the terms of the agreement are confidential, they would not be disclosed publicly, both parties said.